New citizen borrowing proves failure of federal authorities in implementing reforms

The Government of the Federation of Bosnia and Herzegovina continues to borrow from the citizens of FBiH, having issued 70 million KM in bonds through the Sarajevo Stock Exchange for a period of seven years. According to the Government's plan, further borrowing from FBiH citizens in the amount of 130 million KM should be expected by the end of the year. With previous borrowings from this year, the Government of FBiH will end this year with half a billion KM in new debt, it was announced from SDP BiH, reports the bh. news agency Patria.

This indicates the absence of any vision or plan within the ruling coalition in FBiH to ensure budget stabilization in any way other than through additional borrowing.

The Social Democratic Party of Bosnia and Herzegovina reminds of the earlier statements by the federal Prime Minister Fadil Novalić and the FBiH Minister of Finance Jelka Milićević, who claimed that such borrowing is unfavorable and negatively affects the domestic economy, which is deprived of funds in this way because the buyers of bonds and other securities of the Government of FBiH are exclusively banks.

With such moves, the Government of FBiH actually admits its failure to reach an agreement with international financial institutions on the continuation of the arrangement for budget stabilization support, because that arrangement implies the implementation of serious reforms, not deceiving the public into believing that major changes are happening without the Government doing anything concrete.

It is evident that the International Monetary Fund and the World Bank do not trust such a Government, which offers them nothing but nice stories. The citizens of FBiH will pay the price for the failure of such policies, as the irresponsible government continues to borrow from them, thus buying time in which they will continue to engage in occupying director and other positions in various management and supervisory boards of public companies.